Acquisition of Decanter Machine, Inc.
FLSmidth is to acquire US-based Decanter Machine, Inc., which manufactures and supplies centrifugal technology to the global mineral industries. It has more than 550 centrifuges installed across 11 countries and is known for its screen bowl, solid bowl and hyperbaric centrifuges. Decanter also provides spare parts, field services, preventative maintenance and rotor unit repairs. The company is headquartered in Tennessee, with offices in South Carolina, USA, and New South Wales, Australia. The acquisition is subject to rezoning a portion of real estate, which is set to take place in September.
“This is an important step in our strategic efforts to grow within our six focus industries; coal, iron ore, fertilizer minerals, copper, gold and cement. Combined, the acquisitions of the Australian company Ludowici in July and now Decanter, have strengthened our minerals offerings, making a perfect basis for us to become our customers' preferred full service provider within both fertilizer minerals and the coal industry,” stated Group CEO Jørgen Huno Rasmussen.
Quarterly and half year results
FLSmidth has also released its interim report for 2Q12 and January – June 2012. In the second quarter, EBITDA was up 32%, rising from DKK503 million in 2Q11 to DKK670 million. Order intake increased by 20% to DKK7246 million while revenue reached DKK6036 million, a rise of 26%. However, profit for 2Q12 fell by 24% y/y to DKK223 million.
Profits also declined in the first six months of the year, dropping 1% y/y to DKK672 million. Order intake grew 24% to DKK13 667 million, while revenue rose 22% to DKK11 181 million. EBITDA for the first half of the year also increased from DKK935 million in 2011 to DKK1139 million this year.
Update as of 24 September 2012:
Following the successful rezoning of a portion of real estate, FLSmidth has now closed the acquisition of Decanter Machine Inc, which was initially agreed in August 2012.
Adapted from press release by Louise Fordham.
Read the article online at: https://www.worldcement.com/the-americas/15082012/cement_flsmidth_decanter_acquisition_results/